Challenges and Solutions for H&M in the Fashion Industry

UNDERGRADUATE
MAJOR PROJECT
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Table of Contents
INTRODUCTION...........................................................................................................................2
TASK 1............................................................................................................................................2
One challenge facing by H&M...............................................................................................2
TASK 2............................................................................................................................................3
One specific solution in context of challenge determined in above task one.........................3
TASK 3............................................................................................................................................5
How organization practically implement solution identified in above task two....................5
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................8
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INTRODUCTION
Business environment is complex realm of conditions and factors that influence overall
business activities and practices. It includes some external and internal elements that create
varied types of challenges, which direct impact on tactics and management planning. The current
study will base on H&M, which falls under category of leading and most popular fashion brands
in UK and all over the world. It is originated from fishing and hunting store. This study is
divided into three different tasks. This report will explain one challenge facing by chosen
organization and one solution to address this challenge. Furthermore, this assignment will justify
how firm can practically implement solution determined in task two.
TASK 1
One challenge facing by H&M
Hennez and Mauritz is a Swedish international clothing retail organization that caters
fashion clothing for women, children, men and teenagers (Arrigo, 2018). Firm reaches fashion
followers across the world and has come a long way since the first firm outlet opened in Sweden
in the era 1947 with their first business expansion to a global business started in 1960s. H&M
shook up shook up traditional apparel retailers. But now organization itself is being disrupted
from several factors and face challenge due to adoption of digital technologies adopted by other
online stores and other brands like Zara, Amazon. It impact led to a decrease in organizational
revenue.
In simple words, it can be said that main challenge H&M is facing is adapting to
technological change; they face this issue from organizations promoted apparel at a cheaper
prices and from other online outlets to consumers (H&M: Challenges Adapting to New Business
Trends, 2020). Each change in fashion market always impact on clothing brands, their business
strategies and plans. Many biggest fashion companies in UK apparel industry are attempting to
gain competitive advantages and enhance their consumer’s base, which is quite essential for all
of them. H&M business also get affected because of technology change adopted by other brands.
Technological change is one of the external factors that modify overall business activities. The
challenge that chosen organization is facing has arisen due to the development and advancement
of digital marketing tools which change marketing tactics of other fashion brands in similar
market. Many online stores like Amazon, Boohoo, Asos etc, are promote their cheaper cost
products through the best marketing tools for commercial purposes. For example, Amazon has
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